Cyprus is looking to address and explore innovation in the rising RegTech and FinTechs spaces through the launch of a new hub.
The Cyprus Securities and Exchange Commission said it has established its innovation hub to capitalise on the ‘quickly evolving’ and to foster a better, more effective relationship between entities operating in this area.
Its hub will create open dialogue between industries that operate in the FinTech and RegTech spaces, which will facilitate the exchange of information. Supervised and non-supervised entities in innovative or new industries will access CySEC to gain a better understanding of their regulatory requirements.
Demetra Kalogerou, Chair of the CySEC, said: “The establishment of the Innovation Hub marks an important and exciting step for CySEC’s supervision of new and innovative FinTech companies in Cyprus. In promoting closer ties with these fledgling but fast-growing industries, we aim to best protect investors by fully understanding the risks and benefits these new products bring.”
While CySEC’s aim is to give FinTechs access to specialised regulatory expertise, industry and academic roundtables, the regulator also wants to improve its own understanding of the risks and benefits of new innovative investment products and platforms.
Through two-way communication, CySEC plans to tap the FinTech sector to bolster its knowledge of Distributed Ledger Technology (DLT) (e.g. Blockchain), enabling a more informed regulatory landscape.
As the RegTech and FinTech sectors continue to evolve, regulators around the world have adopted a number of initiatives to foster innovation.
Last year, Dubai and Australia’s regulators have agreed to cooperate on FinTech. Through the deal, the Dubai Financial Services Authority (DFSA) and Australian Securities & Investment Commission (ASIC) agreed to cooperate on and promote FinTech in each other’s markets.
The Financial Conduct Authority (FCA) also recently signed a collaborative arrangement to support FinTech innovation with the US Commodity Futures Trading Commission (CFTC). Under the arrangement, the regulators said they will collaborate and support innovative firms through each other’s financial technology (FinTech) initiatives, LabCFTC and FCA Innovate.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
